Ed Neuhaus 
Austin generated $4.6 billion in homes sold at $1M or above in 2025. That’s 2,700+ transactions at an average of $512 per square foot. And here’s the part that surprises most people: the luxury segment is actually outperforming the broader Austin market. While the overall market is softening, luxury is growing.
December 2025 luxury median hit $1,350,000, up 3.8% year-over-year. There were 239 luxury sales that month, up 15.5% from the prior year. The broader Austin market was down across almost every metric. So what’s going on?
Why Luxury Is Different
The luxury buyer profile in Austin is fundamentally different from the median buyer. These are cash-heavy buyers or buyers with enough equity that mortgage rate fluctuations are a minor consideration, not a dealbreaker. When rates moved from 5% to 7%, the $400K buyer lost 25% of their purchasing power. The $3M buyer adjusted their expectations marginally or paid cash.
Austin’s tech economy drives this. The executive relocations, the IPO liquidity events, the venture capital exits. These create buyers who aren’t rate-sensitive. They’re lifestyle-sensitive. They want Eanes ISD for the kids. They want Hill Country views. They want the lot size and privacy that $3M buys in Austin versus what it buys in the Bay Area (roughly a teardown on a small lot).
The Ultra-Luxury Gap: $2M+ Is a Different Market
Here’s where it gets interesting. While the $1M-$2M segment is performing well, the ultra-luxury market above $2M is sitting. The median is around $2.6M, but there are 16.74 months of inventory. Pending listings are down 65% compared to the prior period. Buyers at this level are extraordinarily selective.
Why the split? The $1M-$2M range still has a relatively deep buyer pool. These are senior tech managers, successful entrepreneurs, dual-income professional households. Once you cross $2M, the buyer pool narrows significantly. The search becomes longer, more specific, and more relationship-driven. Many of these transactions happen off-MLS through agent networks rather than on public listing sites.
The top MLS sale in 2025 was $13.95M on Lake Austin. The record price per square foot hit $2,380. But these trophy sales are a different asset class entirely. For the working luxury market between $1M and $5M, the dynamics are more nuanced.
The Private Market: What the Numbers Don’t Show
This is something I talk about a lot because I think it’s the single most misunderstood aspect of the Austin luxury market. The off-MLS private inventory in Austin is estimated at roughly a $1.2 billion portfolio. These are homes that are available for sale but are not publicly listed. They’re shared between agents through private networks, whisper listings, and direct relationships.
In Westlake Hills and Rollingwood specifically, the private market is significant. Sellers at the $3M+ level often prefer privacy. They don’t want public open houses. They don’t want their home on Zillow. They test the market through their agent’s network first, and if they get the right offer, the public never knows the home was for sale.
What this means for buyers: if you’re searching only on public listing sites, you’re seeing maybe 70-80% of available luxury inventory. The remaining 20-30% is only accessible through agents who are active in the private listing networks. The best property for you might never appear on any website.
What this means for sellers: the public data about days on market and inventory levels in the luxury segment understates the actual competition. Your real competitive set includes homes you can’t see on the MLS.
Where the Luxury Market Stands by Community
The luxury data varies dramatically by neighborhood. Here’s the breakdown from my price comparison data:
Westlake Hills: Median $3.5-3.6M, $756/sq ft, 54-85 days on market. This is the most resilient luxury market in Austin. Sellers here don’t have to sell. They have equity, they have options, and if the market doesn’t meet their expectations, they move to private listings or simply wait. The combination of Westlake High School (19th nationally), hilltop views, and proximity to downtown creates demand that doesn’t disappear in a downturn.
Rollingwood: Median $2.3-2.9M, $709/sq ft, 65 days on market. Same Eanes ISD schools, slightly lower price point, and a completely different community character. About 1,500 people, kids bike to friends’ houses, legendary July 4th parade. Low volume means any single sale can skew the data, but the underlying demand is consistent.
Spanish Oaks: $3.47-3.99M, 109 days on market. Ultra-luxury gated community with a Bobby Weed championship golf course. The buyer pool is narrow but specific. If you’re selling here, patience is part of the plan.
Barton Creek: $2.2-3.1M, 189 days on market. The longest sit time in West Austin. Barton Creek is a specific product: gated country club with Omni Resort, four championship golf courses, 4,000 acres. The lifestyle is unique, but the buyer pool who specifically wants country club living at $2M+ is narrower than the general luxury pool. For buyers, this means leverage. A motivated seller at 189 days is going to negotiate. More detail in my Bee Cave and Barton Creek analysis.
Rough Hollow (Lakeway): $825K-1.3M, 78 days on market. Entry-level luxury with marina access (294 slips), Highland Village water park, and Lake Travis lifestyle. This is the gateway to lakefront luxury without the $3M price tag. See the full Lake Travis market breakdown.
New Luxury Construction
Two developments are defining luxury new construction in West Austin for 2026:
Travis Club (Spicewood): 1,500 acres along Lake Travis, Beau Welling golf course opening mid-2026, private marina, homesites from $700K to $3.4M. This is the single largest luxury development in the West Austin pipeline and it’s a direct competitor to Barton Creek and Spanish Oaks for the country club buyer. The difference: it’s newer, the amenities are modern, and the marina gives it water access that the other communities don’t have.
The Overlook at Westlake: 48 homes by MileStone, $2.85M to $5M, Eanes ISD, move-ins late 2026. New construction in Eanes ISD almost never happens because the land is built out. This is a rare opportunity to get a new home in the top school district in Texas.
For the full rundown on all new communities, see my new construction guide. And for the investment angle on Hill Country property, my investment properties piece covers the numbers. For something truly unique, fly-in communities in Central Texas serve a niche luxury buyer with private aviation needs.
What Luxury Sellers Need to Know
If you’re selling a $1M+ home in 2026, the good news is that your segment is outperforming the market. The bad news is that ultra-luxury ($2M+) inventory is deep and buyers are selective. Here’s what matters:
Presentation is everything. Staging a $3M home is completely different from staging a $500K home. At this level, buyers expect magazine-quality presentation. Professional staging, professional photography, video walkthroughs, and often a dedicated property website. The days of sticking a sign in the yard and waiting for offers are over.
The private market is an option. If you don’t want your home on the MLS, you can test the market through agent networks first. This preserves privacy and avoids the stigma of accumulated days on market. But it also limits your exposure. The tradeoff depends on your priority: privacy vs. maximum exposure.
Price realistically. The 90.9% close-to-list ratio in the broader market applies less to luxury, but the principle holds. Overpriced luxury homes sit, and every month they sit, the next offer is lower. The first two weeks on market are your best window. Don’t waste them. For a deeper dive on pricing strategy, see my seller’s guide.
What Luxury Buyers Can Leverage
Sellers are more willing to negotiate than at any point since 2019. Here’s what you can push for:
- Price reductions beyond the listed price, especially on homes that have been sitting 90+ days
- Closing cost credits and rate buydowns, even at the luxury tier
- Extended closing timelines to accommodate your sale or relocation
- Repair credits based on inspection findings, rather than the seller doing the work
- Personal property inclusions like furniture, fixtures, or equipment that enhance the property
The leverage is real. Use it. But work with an agent who understands the luxury market specifically, because the negotiation dynamics at $3M are different from $500K. For the full buyer opportunity assessment, see my buyer’s guide. And for the complete Austin market context, my 2026 forecast covers all price tiers. The Austin Hill Country real estate guide provides the broader regional perspective.
Ready to Explore the Luxury Market?
Contact Ed Neuhaus at Neuhaus Realty Group for access to both public and private luxury inventory across West Austin. Whether you’re buying or selling at the $1M+ level, the strategy and market access matter more than at any other price point. Browse current luxury listings in Westlake Hills, Rollingwood, Bee Cave, and Spanish Oaks.
